PRE-Payment sa BPI Loan, Paano kino-compute?

[denis_8th]

Hi. May I ask those who have car loans with BPI. Sa contract ng mortgage ninyo, ano yung nakalagay na method for computing prepayments? Sa iba kase Rule of 78 --- I am not sure kung papaano sa BPI?

[v6dreamer]

Here in the U.S we have the TRUTH AND LENDING statement that it come's with the paper work (contract). I think there is no diff in the Phils. It will be located in your papers that they gave you when you closed your loan. If you do not have it, call the bank. You could ask this legally into your financial institution, so you as a barrower know how much you realy paying for.

[Galactus]

Depende on how they computed for the interest. Check the Promissory Note, dapat nakalagay dun.

Some banks/FI's kasi charge a pre-termination fee based on the remaining PRINCIPAL balance (ranging from 3 to 6%, depending on the term). Others naman charge 1 or even 2 year's interest as the pre-term fee, kasi naka-book na sa libro nila yung interest income. Hindi kasi standard ang rates ng pre-term fee sa mga banko.

So basically, the computation is: PRINCIPAL balance + Pre-term fee (which could either be X percent of the principal, or 1 or 2 years interest of the loan).

By principal balance, I mean the OUTSTANDING Balance minus the unpaid INTEREST portion of the loan.

Why not call the auto loans department of your bank?

[alainroyce]

BPI has a payoff amount.. its much lesser than your outstanding balance.. specially if the loan has a long term basis and you cash it out.. you have a big discount...

[alainroyce]

double post...

[denis_8th]

BPI has a payoff amount.. its much lesser than your outstanding balance.. specially if the loan has a long term basis and you cash it out.. you have a big discount...

Hi. What is their method? Some banks use the straightline method, some use the diminishing balance and some use the rule of 78. All of these three will get you discount if you prepay with cash before your loan is over. Kaya lang, yung "discount" mo is not actually discount. It will look like discount because they will reduce the total amount to pay but actually, they just reduced their interest income -- reduced meaning not totally removed, some you will have to pay depending on the method used.